Nov. 14 (Bloomberg) -- OTP Bank Nyrt., Hungary’s biggest
lender, jumped the most in a week as non-performing loans showed
the first quarterly drop in five years and adjusted net income
beat analyst estimates.

The stock rose 3.4 percent to 4,479 forint by the end of
trade in Budapest, snapping a 9.4 percent drop over the past
five days. About 1.6 million shares changed hands, or 1.8 times
the three-month average. The BUX index, in which OTP has a 33
percent weight, added 2 percent as Hungary’s economic growth
accelerated more than economists’ forecast.

OTP posted adjusted net income of 42 billion forint ($190
million) for the three months through September, compared with a
median estimate of 38 billion forint in a Bloomberg survey. The
share of loans that were at least 90 days overdue fell 20 basis
points, or 0.2 percentage point, to 20.6 percent, the first
retreat since 2008, according to OTP.

“Results slightly beat estimates” and the improvement in
“loan portfolio was refreshing,” David Sandor, a Budapest-based equities analyst at KBC Securities, said in an e-mailed
report.

The write down in Ukraine, declining profitability in
Russia are negative for the stock, Sandor said. Further measures
taken by Hungary to help households with foreign-currency
mortgages may also burden the company, he said.

Economic Growth

Hungary recorded third-quarter growth in gross domestic
product of 1.7 percent compared with a year earlier, the fastest
pace since the January-March 2011 period, according to
preliminary data released by the statistics office today. The
median forecast of 11 economists in a Bloomberg survey was 0.8
percent.